Louisville Metro Neighborhood Market Drill-Down
WHY WE NEEDED THE STUDY...
In 2002, while campaigning to become Mayor of Louisville Metro,
Jerry Abramson heard from citizens across the city requesting needed
neighborhood retail services, such as sit-down restaurants, grocery
stores, and department stores, etc.
After being elected, Mayor Abramson created a new component of
Metro Government, focused on supporting and developing retail
services in every neighborhood of the merged city – the Corridors
Of Opportunity in Louisville program. COOL is administered by the
Economic Development Department.
The department has had significant success, from helping bring a new
Kroger to the Portland neighborhood to the renovation of Westport Village
as a shopping center with a town center atmosphere.
COOL has assisted local businesses, such as Wick’s Pizza and Heine
Brothers Coffee, to expand into new areas of town and it has worked
with national chains, like PF Chang’s and Starbuck’s, to open new
restaurants and stores in Louisville neighborhoods.
Because national retailers predict the potential sales for a new location
through the paper trail left by credit card usage, it is difficult for a national
retailer to understand what opportunity exists for them in a neighborhood
area in which a large or even dominant share of the goods and services
purchased are purchased with cash. Thus, the Louisville Metro Economic
Development Department commissioned the Louisville Drill-Down,
conducted by Social Compact, to study these areas in more detail.
The full study may be downloaded at:
WHAT THE STUDY SAID:
(The Study area is largely west of Interstate 65 with additions including the
neighborhoods of Smoketown, Preston, and Newburg.)
• There are 44,817 more people in the study area than documented
in 2008 estimates for the same area
• There is an additional, and previously unreported, $1.1 billion
undocumented cash economy in the study area, making the market
for this area a total of $6.7 billion.
• The average income of new (2003-07) homebuyers in the study
area is 10% higher than the average income for all residents in
the study area.
• The study area is well served with full-service grocery stores. There
are 67 groceries in the study area, which equals 2.5 grocery stores
per 10,000 households. Some specific opportunities do exist.
• There are 133 banks and credit unions in the study area, totaling
8.7 institutions per 10,000 households, and an average of .65 miles
(*Note: distance and “per 10,000 household” numbers vary by sub-zone within
the overall study area)
RELATIONSHIP TO THE RETAIL MARKET STUDY:
The Drill-Down study area is only a portion of Louisville and should be utilized to augment
the findings of the Retail Market Study for that specific geography.
Mayor Abramson’s COOL program and economic development staff will utilize this data to
encourage new and expanding real estate and business investment by both local and national
retail entities. It is expected that social service agencies, housing agencies, banks, and other
agencies also will utilize the data to improve their service to clients.
Jerry E. Abramson
C. Bruce Traughber, Director
John Fischer, Assistant Director
Economic Development Department
444 South 5th Street, Suite 600
Louisville, KY 40202
COLLEGE OF ADVISORS
The following contributed funding: City of Louisville, Louisville Economic Development Department, Federal Reserve Bank of St
Louis – Louisville Branch, Making Connections Louisville, Metro United Way, Community Resource Network, PNC Bank, Fifth Third
Bank, and US Bank.
The following contributed data: City of Louisville, Louisville Economic Development Department, Louisville Department of Codes &
Regulations, Louisville Metro Police Department, Louisville Metro Public Protection Department – Criminal Justice Commission,
Louisville Metro Finance Department, Louisville Metro Housing & Community Development, Louisville Metro Planning & Design,
Louisville Metro Government Technology Services, Louisville Downtown Management District, Louisville/Jefferson County
Information Consortium(LOJIC), Metropolitan Sewer District, Jefferson County Public Schools, Jefferson County Property Valuation
Administrator, Louisville Water Company, E-on, Duke Energy, Kentucky Department of Revenue, Kentucky State Data Center,
Greater Louisville Inc, Louisville Metro Housing Coalition, and the Louisville Realtors Association.
ABOUT SOCIAL COMPACT
Social Compact is a national not-for-profit corporation led by a board of business leaders whose mission is to help strengthen
neighborhoods by stimulating private market investment in underserved communities. Social Compact accomplishes this through
its Neighborhood Market DrillDown analytic tool, developed to accurately measure community economic indicators, and provides
this information as a resource to community organizations, government decision makers and the private sector. Social Compact
is at the forefront of identifying the market potential of underserved neighborhoods and promotes public private partnership involv-
ing community members and leveraging private investment as the most sustainable form of community economic development.
You can learn more at their web site: www.socialcompact.org